Venezuelan producer Pequiven delivers PVC on schedule

HOUSTON (ICIS)--Venezuelan state-run polyvinyl chloride (PVC) producer Pequiven is delivering its resin on schedule following some slow down earlier this month, sources said on Thursday.

Pequiven plans to import 13,000 tonnes of PVC during the second half of 2011. Of that total, 6,000 tonnes are for consumption by processors in the country over a period of four to five months, while the remaining 7,000 tonnes are intended for inventory build-up, local sources said.

All of Pequiven’s PVC production will be targeted towards the construction of low-cost petrocasas, which use significant amounts of PVC for wall panels, shelves, doors and window and door frames.

However, the petrocasas project is proceeding slowly, with no significant production noted at this time, according to local sources.

Negotiations to obtain financing for the imports have started, sources said, adding that the PVC will most likely be bought from US or Colombian suppliers.

Pricing of the imported product will probably be related to the purchase price from international markets, rather than $737–750/tonne (€516-525), the low domestic prices established by the government for Pequiven pipe-grade resin, sources said.